Medicaid payments for alcohol and drug treatment climb 328.7% in Orrum in 2024

In 2024, Medicaid providers in Orrum billed $200,953 for services included in the Alcohol and Drug Abuse Treatment category, U.S. Department of Health and Human Services Medicaid Provider Spending data show. That amount represents a 328.7% surge compared to 2023, when claims for the same services reached $46,877.

Medicaid is a public health insurance system administered by states and funded by both federal and state governments. It provides coverage for low-income families and individuals, seniors, children, and people with disabilities, making it a significant component of the U.S. health care infrastructure.

Because taxpayer dollars make up Medicaid payments, shifts in local billing help illustrate how public health care funding is distributed in a given area.

The “Alcohol and Drug Abuse Treatment” classification encompasses a set of Medicaid-billed services, organized by care type and consistent HCPCS and CPT code prefixes and ranges. For this review, each billing code falls into one service category, which groups related services, prevents double counting, and maintains accuracy in category rankings over time.

Alcohol and Drug Abuse Treatment led all Medicaid-billed categories in Orrum by overall payment amount in 2024, though Medicaid spending grew across other service types.

Statewide in North Carolina, Alcohol and Drug Abuse Treatment placed fourth among Medicaid categories by total payments for 2024.

From 2019 through 2024, Medicaid payments related to Alcohol and Drug Abuse Treatment in Orrum rose by $37,231, or 15.6%. Certain years, including 2022, saw especially rapid year-over-year spending increases.

While spending on Alcohol and Drug Abuse Treatment occurred citywide, payment totals were concentrated in specific ZIP codes. In 2024, ZIP code 28369 was the area with the highest Medicaid payments in this category, totaling $200,953. The top ZIP code accounted for 100% of Alcohol and Drug Abuse Treatment Medicaid payments recorded in Orrum during the year.

Medicaid expenditures within the Alcohol and Drug Abuse Treatment category mainly clustered around a select group of billing codes.

Orrum’s 328.7% rise in Medicaid payments for Alcohol and Drug Abuse Treatment between 2023 and 2024 compares to a 408.7% rate of increase across all Medicaid claim categories citywide over the same timeframe.

Centers for Medicare & Medicaid Services data reports show combined federal and state Medicaid spending reached approximately $871.7 billion for fiscal 2023. This represents about 18% of total U.S. health expenditures, up sharply from roughly $613.5 billion in 2019, ahead of the COVID-19 pandemic.

The roughly 40% jump in spending over several years largely reflects increased enrollment and higher utilization during and after the pandemic.

The Trump administration’s recent federal budget legislation included major proposals to reduce federal Medicaid funding and alter the structure of the program. The “One Big Beautiful Bill Act,” implemented in 2025, is expected to reduce federal Medicaid spending by more than $1 trillion over 10 years. Policies introduced through this legislation, such as work requirements and more cost-sharing, may decrease coverage and funding for some recipients. These measures are likely to shift greater fiscal responsibility to states and limit federal Medicaid growth, even as the program serves tens of millions of people nationwide.

Note: HCPCS codes are shown for context within the category. Category totals and rankings in this article are based on standardized service groupings rather than individual billing codes.

Information in this article was obtained from the U.S. Department of Health and Human Services Medicaid Provider Spending database. The source data can be found here.